AC OUTFIT Business Plan

Table of Contents Introduction Page & Company Name Executive Summary & Mission Statement Logo & Slogan Product Description Finances Advertising Shipping Costumer Payments Customer Service Summary of Day to Day Costs Target Market Growth Goals Competition Potential Problems & Solutions Conclusion

AC-Outfit Enterprises is an dot-com company that sells specially made clothing with installed mini AC systems Our company name AC- OUTFIT is an abbreviation for Air Conditioning Outfit. With a surplus of venture capital funding, and product distribution via the internet The buying and selling of our outer wear is entirely conducted over electronic system such as the internet and other networks. Due to the fact that we use the world-wide-web as our main retail platform our products are offered to the entire world with varying shipping costs. Introduction Page & Company Name

Product Description  Our product is designed to cool/warm the body of the wearer through an almost undetectable air conditioning system, for any out door activities or workers  The product will keep the wearer warm though the cold winters and cool in the hot summers  the system is powered by either movement generated electricity, or solar generated electricity  Since people go out side frequently, for skiing/skating/hiking etc, we can say that a lot of people will buy the product for these activities

Executive Summary  AC Outfits is great for outdoor enthusiasts looking for distinctive outdoor clothing online  Our e-commerce website eliminate the middle man and offer unique outdoor clothing that is both functional and aesthetically appealing  Our costumers will be paying a fraction of what they normally do for current outdoor adventuring jackets in stores.  James Ding and Tiger Sun co-owners of AC Outfit Enterprises, have experience working with technology and e-commerce.  AC Outfit Enterprises will not maintain a surplus of clothing inventory.  AC Outfits will work closely with its manufacturing facilities located in Sichuan, China to produce and ship all of our outerwear.  AC-Outfit will maintain the necessary inventory and produce sufficient product to meet the planned demand.

Mission Statement: “AC-Outfit Enterprises’ fundamental objective is to provide scientifically sound, high-quality, and comfortable air-conditioning jackets to our consumers.”

Logo & Slogan This slogan is created to Therefore, the slogan is created to emphasize comfort Attract the attention of customers Show the uniqueness of the product

Product Description We have many large clothing companies as partners in this business Our jackets cost a bit more than your average clothing, but less than professional venturing gear The jackets are made of water proof material, being able to protect the wearer from most of nature’s wrath The cool/warm air is directed through tiny holes so small that’s its invisible to the naked eye, to the body

Finance

Labour Labor cost/ year CEO (possibly Tiger or James)0$ (Tiger or James) Technicians (up to 2 people)$50,000 x 2 =$100,000 Marketing Director(1 person)0$ (Tiger or James) Workers( up to 30 people)20,850 each= up to $625,500 making about a jacket every 2 hour each person IT Technician (1 person)56,000 x 1 = 56,000 Accountants (up to 2 people)0$ (Most likely Tiger or James) Employee Insurance/Benefits50,000 Total197, ,500$/year depending on the amount of product needed to be produced

Day to Day Costs Day to Day Cost Office supplies2,000 Communication fee5,000 Travel expenses30,000 Car expenses20,000 Internet fee3,000 Total60,000 Public Finance Budgetary Revolving Fund Due to the fact that we must prepare half a year of deposit fund a head of time. We will cut half of all our total costs and include the start-up cost to calculate the revolving fund.

Start-Up Money Registration fee$300 Leased Machinery and equipment$25,000 Factory Refurnishing$50,000 Patent20,000 Cost Fixed cost -Labor -Utilities/hydro -rent -depreciation -Online retail operation fee -Employee Training $197, ,500 $50,000 $200,000 $100,000 $10,000 Variable cost -day to day - material cost - Advertising - Machinery maintenance 62,000 $50,000 $300,000 $50,000 Total (including Day to Day Cost)$865,700-1,706,800 Cost per item$226.6

Start-up Money Requirements Start-up Expenses Legal$6,000 Stationary etc.$2,000 Consultants$8,000 Insurance$2,000 Rent (Factory)$6,000 Leased Factory Equipment$25,000 Computer Equipment/Software$40,000 Website$10,000 Total Start-up Expenses$100,000 Start-up Assets Cash Required$450,500 Start-up Inventory$0 Other Current Assets$0 Long-term Assets$0 Total Assets$450,500 Total Requirements$1,000,000

Start-up Summary Start-Up Funding Start-up Expenses to Fund$570,500 Start-up Assets to Fund$450,500 Total Funding Requirement$1,021,000 Assets Non-cash Assets from Start-up$0 Cash Requirements from Start-up$450,500 Additional Cash Raised$0 Cash Balance on Starting Date$450,500 Total Assets$450,500 Liabilities and Capital Current Borrowing$0 Long-term Liabilities$400,000 Accounts Payable (Outstanding Bills)$0 Other Current Liabilities$0 Total Liabilities$400,000 Capital Planned investment Investor 1 (James)$250,000 Investor 2 (Tiger)$250,000 Other$0 Additional Investment Requirement$0 Total Planned Investment$500,000 Lost at Start-up$100,000 Total Capital$400,000 Total Capital and Liabilities$800,000 Total Funding$1,021,000

Price Outerwear TypeAverage Price/Jacket Ultimate Heating AC Outfits$500 Supreme Heating AC Outfits$430 Premium Heating AC Outfits$350 Average Price/ Outerwear Cost/OuterwearProfit/Outerwe ar payment fees (paypal or other methods of payment) Roughly 126$ 4,300,0002,966,0001,260,000 Assuming the CIT is 20% then our net profit will result to be 1,000,000.

Advertising Market Analysis Summary  In the past 15 years, outdoor clothing has grown into a billion dollar niche in the clothing industry.  The popularity of the internet also launched a number of online stores for outdoor enthusiasts but no company is exclusively selling outerwear with air conditioning function online.  Our marketing medium is traditional advertising through sportswear magazines and fitness magazines.  Other marketing medium include social media marketing, where we will advertise our products through YouTube, Facebook, Twitter.  Our ads will focus on the quality and uniqueness of our clothing. The special comfort it offers and the distinctive style.

Advertising  Market Segmentation  AC-Outfits will focus on two distinct groups of people that purchase outdoor clothing.  People of age:  These are the core group that will drive our clothing brand’s success and are responsible for the growth of outdoor clothing.  They can be quite difficult to pull into the website. However, once they are there, the key will be to promote the quality, uniqueness, and savings.  In addition, we need to assure that our customers are satisfied with their purchases. Thus, a hassle-free and efficient return policy is needed.

Advertising # of people the advertising will reach Growth per year Year 1Year 2Year 3Year 4Year 5CAGR Ages %6,000,0007,200,0008,640,00010,368, ,441, % Ages %5,000,0005,750,0006,612,0007,604,3758,745, % Other0% % Total17.81%11,000, ,950, ,252, ,972, ,186, %

Advertising Advertising Mediums Magazines -Sports Magazines $20,000-50,000 -Travel/Tourism Magazines $20,000-50,000 -Recreational Magazines 10,000 Sports Game Sponsorship -Hockey Arena and Games Sponsorships (after growing a lot bigger) -Winter Olympics sponsorship (after growing a lot bigger) -Other skiing and snowboarding competitions(after growing a lot bigger) Social Media Marketing (max of $10,000 for each method each) -Facebook -Twitter -YouTube Advertising through Sports Brands or getting a TV ad -Putting up internet popups in sporting brands websites (up to $50,000) -Adidas, sports check, Converse/winter sports channel(up to $200,000)

Customer Payments  We accept a variety of customer payments such as Visa Cards, Master Cards, American Express, PayPal, Pay By Cash services, etc.  Our standard shipping will begin once the money is transfered to us.  We also offer different gift cards that can be purchased from local convenient stores, supermarkets, electronic stores such as:  Best Buy  Future shop.  Our gift Cards can be used to redeem cash on our websites. Our cards come in:  $500  $700  $1000

Shipping  AC Outfits will cooperate with FedEx to improve the standard delivery time and costs.  We will offer free shipping for all purchases over $1000And free international shipping for over 1500$.  Our jackets are light weighted so it will not cost an enormous amount for shipping. The shipping costs also varies according to different continents.  The chart below lists the amount of shipping costs according to weight and distance.  The standard shipping will be anywhere from 3 days to 2 weeks depending on the distance. AfricaWith in Asia South America North America EuropeAustralia 1 item$15$10$30 $20$15 2 item$20$15$45 $30$25 3 item$25$20$50 $40$35

Customer Services  We offer quality customer service to our customers.  On our e-commerce websites, there are chat boxes opened to our retail agents to provide solutions to problems.  We also offer services through phone and .  All of our s are replied within 24 hours  All of our jackets have a three year warranty so we guarantee a free exchange for any dissatisfaction.  We also have a great return policy that allows our costumers to return any outerwear they are dissatisfied with.  we will be responsible for the shipping costs if a costumer wishes to return a product.

Target Market  Out target market is anyone who enjoys outdoors activities whether it’s for work or recreational purposes.  We target anyone between the age of 12 to 80.  We target those who enjoy outdoor recreational activities such as :  skiing, snowboarding, ice-skating, ice hockey, camping, fishing, etc.  We also target those who works outdoors.  Such as TV show anchors, journalists, archaeologists, etc. We target those who will be out in the cold weather for long periods of time.  Our jackets are designed to give off warm heat from:  charged electricity  solar energy as it applies to all outdoor enthusiasts.

Growth  800,000 Americans/Canadians ski each year and more go hiking/adventuring in place of extreme weather and temperature such Alaska  We expect our initial sales in the first year to be around 10,000 jackets.  we do expect our sales to gradually increase over the next 5 years.  We expect to break-even after the first five years. With each years’ depreciation evened out.  we expect to expand our company and increase more factory locations, and eventually opening up retail stores  Our sales projection is expected to be 75,000 jackets by the end of our 5 th year.  phone services which are available Monday through Friday 9:00 am to 6:00 pm.  Sports Game Sponsorship - Hockey Arena and Games Sponsorships (after growing a lot bigger) -Winter Olympics sponsorship (after growing a lot bigger) -Other skiing and snowboarding competitions(after growing a lot bigger)

Potential Problems & Solutions  One of the potential problems that might occur in the future may be due to fact that we do not have actual retail locations.  solution to this problem could be to expand our advertising.  We could offer links to our website on other sportswear websites, eBay, and Amazon, etc.  We know that the current generation of adults are fully capable of shopping online and so by simply expanding our advertising we expect to solve that problem.  Another potential problem that might occur is our technology.  It could be difficult for new costumers to accept our clothing.  To solve this problem we will have  testimonials to try our product and give out their thoughts and opinions via YouTube.  Soon, after our products become more and more acceptable in the public we will have an rapid increase of sales.

Competitions Our competitions are other outdoor clothing brands such as: – LL Bean, the North Face, The Timberland Company, etc. We expect to even out our competitions through our unique offerings of technology. Our AC system will automatically bring out the distinction. – Once we are able to impress consumers with our unique quality and technology we expect to be one of the strongest companies in retailing. we do not have specific retail locations – it will not hurt our growth because of our mass advertisement and our unique branding concepts.

Conclusion  AC Outfit Enterprises is an e-commerce that offers the online retailing of air conditioning jackets.  AC Outfit’s uniqueness and distinction will rule out many of the existing competitors.  We have a detailed financing plan that will allow the company to break-even within the first 5 years, despite the enormous initial investment.  We will advertise through different mediums such as:  Magazines, Sports Game Sponsorships  Social Media Marketing  Advertising through sports brands.  Our target market include all of the outdoor enthusiasts amongst our consumers.  We offer unique and quality customer service to our costumers through web chat, phone services, and services.  We expect to expand our company internationally and increase our revenue as much as possible within the next 10 year